In a significant reshaping of its executive structure, International Game Technology (IGT) is witnessing strategic personnel shifts as it prepares for a merger set to alter the landscape of gaming and financial technology. The industry behemoth announced that key divisions PlayDigital and Global Gaming are poised to join forces with Everi, a specialist in gaming systems and payment solutions. The impending union will give birth to a powerhouse worth $6.20 billion, with Vince Sandusky, the current CEO of IGT, at the helm as the new entity’s chief executive.
Poised for a fresh chapter, IGT’s PlayDigital is set to bid farewell to its CEO, Enrico Drago, who has played a crucial role in creating a robust footprint in the igaming and North American sports betting segments. His leadership over the past half-decade has been instrumental in positioning IGT for future successes. As Drago steps down, IGT’s board of directors will continue to benefit from his strategic insights, as he takes on the role of a non-executive director from April 1.
Stepping into the void is Gil Rotem, a seasoned veteran from Bet365 and the current IGT PlayDigital president of igaming. Rotem’s ascent within the company is set to rapidly accelerate as he expands his purview, becoming the president of PlayDigital. Offering his gratitude to the dedicated team at IGT PlayDigital, Drago emphasizes his eagerness to support the company’s evolution in a new capacity, refining its vision and strategic direction.
The reorganization extends to IGT’s upper echelons, with Marco Drago, father to Enrico and a long-standing figure on the IGT board, announcing his intention to vacate his position. Fulfilling his tenure through to the annual general meeting on May 14, Marco Drago leaves a legacy of cohesive growth, transforming IGT from a consortium of companies into a unified global gaming titan. Accrediting much of IGT’s expansion to the collaborative efforts of dynamic board members and unit leaders, Marco Drago passes the baton with the company positioned stridently for continued advancement.
Amid these transitions, IGT’s executive chair, Marco Sala, has also shared his perspectives, thanking the elder Drago for his unwavering commitment to generating substantial stakeholder value. Sala is confident that Enrico Drago’s contribution to the board, coupled with his exit from executive duties, will complement and potentiate the company’s growth and transformative ambitions.
With the impending spin-off and merge, IGT will undergo a profound rebranding, with its identity incorporating the newly integrated PlayDigital, Global Gaming, and Everi business units. Shareholders of IGT can anticipate owning about 54% of this newly formed juggernaut, with Everi stakeholders holding the remaining 46%. Poised for a closure date later this year or early into 2025, the merger has already secured approval from both the IGT and Everi boards. In the aftermath, the Everi business will be rechristened as International Game Technology Inc. and will continue trading on the New York Stock Exchange.
Financial forecasts for the combined entity project a revenue stream of approximately $2.7 billion in 2024, with estimates of adjusted EBITDA nearing the $1 billion mark. Meanwhile, IGT’s Global Lottery division will undergo its own metamorphosis, adopting a new name while maintaining NYSE presence under the leadership of Renato Ascoli as CEO.
These strategic maneuvers follow the recent financial disclosures by IGT, with revenues climbing modestly by 2.0% to $4.31 billion in 2023, despite a downturn in net profits. Although the Global Lottery side exhibited a 2.4% dip, it remains the primary revenue driver for IGT. It is a contrasting tale for both Global Gaming and PlayDigital sectors, which enjoyed a revenue increase of 9.1% each. Despite the decline in net profit for the year, investors can take solace in the record-setting adjusted EBITDA, which rose by 6.9%.
IGT’s reshuffle heralds an era of strategic reinvention, reflecting not only the company’s adaptability but its resolve in cementing its status as an indomitable force in the dynamic world of gaming and fintech solutions.
